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The changing face of TV advertising

Television remains an incredibly powerful advertising medium, with linear TV topping the chart for global display advertising spend and investment in 2018, totalling over $140 billion. And with 65% of consumers watching TV for over an hour every day, the living room screen still has exceptional reach.

But the nature of TV consumption is changing, with viewing fragmented across multiple platforms and devices. Viewers are no longer restricted by the traditional TV schedule and appetite for on-demand content is high, with 20.8 million people across MENA expected to use subscription video-on-demand services by 2023. The shift to IPTV also makes it easier to access online video via the TV set.

Consumers are accessing more video content using other devices. MENA digital video consumption is increasing 1.7 times faster than global growth due to improvements in mobile broadband, and almost 70% of UAE consumers use their smartphones for watching videos.

This complex environment can be daunting for advertisers looking to reach specific audiences. But, the evolution of viewing, and the blurring of lines between TV and digital video, can actually bring a number of benefits for those brands willing to take a more ‘holistic’ approach to their campaigns.

One positive aspect of convergence is the ability to precisely target audiences, facilitated by programmatic media buying. While addressable TV is still in its early stages, it opens up the possibility of localised TV advertising at national scale. It also makes the channel accessible for newer and smaller players who would not have previously considered a TV campaign.

A second benefit of the new ecosystem is the ability to identify consumers across a wide range of channels and devices and reach them with joined up messaging that tells a seamless brand story. Around 60% of TV viewers check their phones while watching, so co-ordinating the ads they see on the TV screen with the messaging delivered to their mobile device, for instance, is an incredibly powerful way to reinforce the brand message and drive action.

Finally, using advanced attribution, brands can accurately measure the impact of their ads and use this insight to optimise campaigns in real time, allocating budget to the highest performing channels to make most efficient use of TV and video ad spend. They can also ensure they are using the most effective ad formats for different screens and devices, and test multiple creative variations.

As viewing habits evolve, the face of TV advertising is changing. New TV models are emerging, bringing both challenges and opportunities such as audience fragmentation, increased demand for high quality content and the chance to take a deeper holistic look into advertising strategies. With TV and video convergence allowing for precise audience targeting, seamless cross-channel brand messaging, and optimisation through advanced attribution, this set to be positive development for advertisers, and change the user experience for good.